Proactive Investors - London has widened its gap as being the most attractive area for investors in Britain, a new study found.
Boroughs in London secured nine out of 10 positions in a competitiveness index conducted by the University of Cardiff and Nottingham Business School, which analysed 362 regions across England, Wales and Scotland.
The City of London, Westminster and Camden ranked at the forefront, underlining their economic appeal, with the study noting that the home counties have fortified their dominance, with only East Anglia and Cambridgeshire managing to match the capital's pace.
“The east of England regions are becoming increasingly decoupled from the rest of the nation. It is clear that a location’s proximity to London is becoming an important determinant of its competitiveness and future economic growth,” said the University researchers.
Camden received recognition for its cultural vibrancy, appealing to entrepreneurs and high-skilled professionals, while Hackney surged 10 places in the rankings due to a rise in start-up activity.
On the contrary, regions with weaker competitiveness, such as East Lindsey, were often characterised by reliance on agriculture, Brexit-related labour challenges, and the decline of certain economic sectors over the past two decades.
While the report acknowledged the importance of affordability, it emphasized that competitiveness goes beyond low costs, requiring a balance between attracting businesses and improving living standards.
Researchers concluded: “It is true that an area with low wages and property prices may be attractive for some businesses, but such activities tend to be low value-added and footloose and are not necessarily going to improve standards of living and achieve levelling up. In other words, being cheap doesn’t equate to competitiveness.”